252-lecture11a

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MGT 252, lecture 11a

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1. Discuss the role of a company·s salespeople in creatingvalue for customers and building customerrelationships

2. Identify and explain the six major sales forcemanagement steps

3. Discuss the personal selling process, distinguishingbetween transaction-oriented marketing andrelationship marketing

4. Define direct marketing and discuss its benefits tocustomers and companies

5. Identify and discuss the major forms of directmarketing

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The Nature of Personal Selling

Salesperson covers a wide range of positions fromorder taker to order getter responsible for

relationship building

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Agents

Sales consultants

Sales Representatives Account

Executives

Sales Engineers

District Managers

Marketing representatives

Account DevelopmentRepresentatives

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Salespeople have many names

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The Role of the Sales Force Two-way personal communication

More effective than advertising in complex selling

situations The sales force plays a major role in most companies

The sales force works to represents the company tocustomers

They also represent the customers to the company

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2. Identify and explain the six major sales forcemanagement steps

3. Discuss the personal selling process, distinguishingbetween transaction-oriented marketing andrelationship marketing

4. Define direct marketing and discuss its benefits tocustomers and companies


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Pharmaceutical companieshave extensive sales forces

which visit/sell tophysicians.

What would be thechallenges in each step ofsales force managementfor the sales force of apharmaceutical likeViagra?

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Designing Sales Force Strategy and Structure

Sales Force Structure

Territorial sales force structure

Product sales force structure Customer sales force structure

Complex sales force structure

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Sales Force Strategy and Structure

Sales Force Size

Many companies use the workload

approach to set sales force size Other Issues

Outside and inside sales forces

Team selling

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Recruiting and Selecting Salespeople Careful recruiting can:

Increase overall sales force performance

Reduce turnover

Reduce recruiting and training costs

Traits of Successful Salespeople Intrinsic motivation

Disciplined work style

The ability to close a sale

Ability to build relationships with customers

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Training Salespeople

Training period can be anywhere from a few weeksto a year or more

Training is expensive, but yields strong returns Many companies are adding Web-based sales

training programs

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Training Salespeople

Training programs have many goals

Identify with the company and its products

Know about customers and competitors The basics of the selling process

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Compensating Salespeople Compensation elements: salary, bonuses,

commissions, expenses, and fringe benefits

Basic compensation plans: Straight salary

Straight commission

Salary plus bonus

Salary plus commission

Compensation plans should direct the sales forcetoward activities that are consistent with overallmarketing objectives.

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Supervising Salespeople Supervision is used to direct and motivate salespeople

Companies will vary in how closely they supervise theirsalespeople; will vary depending on the skill level and maturity

of the sales force, and type of selling Tools used:

Annual call plans and time-and-duty analysis can help providedirection

Sales force automation systems assist in creating more efficient

sales force operations The Internet is the fastest-growing sales technology tool

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Evaluating Salespeople

Several tools can be used

Sales reports

Call reports Expense reports

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The goal of the personal selling process is tofind new customers and sell them something

Most salespeople spend their time maintaining

existing accounts and building long-termcustomer relationships

Not all steps required in every sale

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Prospecting and Qualifying

Identifying customers that may have a need for theproduct or service being sold

Only a small number of prospects become customers Prospecting requires effort, time, and commitment

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Preapproach:

Learn as much about the prospective customer aspossible, prior to approaching them to ask for a

meeting Use all resources to learn before meeting

Setting call objectives is important to beingproductive and not wasting the customer·s time

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Approach:

Meeting and greeting the customer for the first time

Involves salesperson·s appearance, opening lines,

and the follow-up remarks Listening to the customer is crucial

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Presentation and demonstration: What happens during the sales call Purpose is to uncover needs and then attempt to

satisfy them Questioning and listening skills are important Technology can help or get in the way Customers value empathy, honesty, punctuality,

reliability, thoroughness, and follow through

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Handling objections: The salesperson seeks out, clarifies, and overcomes

customer objections to buying the product or service Customers object for different reasons: no need, lack

of information, product limitation, or as anegotiating tactic

Handling objections is important, but preventingthem is more effective; need to look at qualifyingskills and use of features, advantages, and benefits

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Closing the sale: Asking the customer to buy (order) the product

The only step that produces revenue; most

important Fear of rejection makes this step the most difficult

Keep it simple, honest, and direct; different types ofclosing techniques make assumptions that can bedangerous if used improperly

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Follow-up:

What takes place after the sale

To ensure customer satisfaction

To keep the door open for repeat business

Ask for referrals

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The principals just described are transaction-oriented

Companies want to encourage repeatpurchasing because it is more efficient thantrying to replace lost customers

It takes different skills to build relationshipswith customers

Mutually profitable relationships are built on

creating value, offering packaged solutions toproblems, and improving products andprocesses

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2. Identify and explain the six major sales force

management steps3. Discuss the personal selling process, distinguishing

between transaction-oriented marketing andrelationship marketing

4.

Define direct marketing and discuss its benefits tocustomers and companies


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Direct Marketing consists of direct one-to-oneconnections with carefully targeted individualconsumers to both obtain an immediate

response and cultivate lasting customerrelationships.

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The new Direct Marketing Model

Direct Marketing is both, a direct marketing channeland an element of the marketing communications

mix Technology has made of direct marketing a new and

complete model for doing business.

Firms employing this direct-marketing model (such

as Dell Computer) use it as the only approach

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Telephone marketing: outbound and inbound, suffersfrom consumer burnout, technology to block calls

Direct mail marketing: flexible, personalized, but

suffers from junk mail image Catalogue marketing: the big winners in the rise of the

Internet; huge cost efficiencies by moving catalogueoffering online

Direct-response television marketing: infomercialswork, despite a poor reputation

Kiosk marketing: going where the customers are

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For buyers:

Convenient

Easy to use

Private Access to a wealth of information

Immediate

Interactive

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For Sellers Powerful tool for building relationships

Allows for targeting of small groups or individuals

with customized offers in a personalized fashion Can be timed to reach prospects at the right time

Offers access to buyers that couldn·t be reached viaother channels

Low-cost, effective alternative for reaching specific

markets

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Customer database: organized collection ofcomprehensive data about individual customers orprospects, including geographic, demographic,psychographic, and behavioral data

Databases include comprehensive data including geographic,demographic, psychographic and behavioral

Databases can be used to identify prospects, tailor products,and maintain customer relationships

Database marketing requires substantial investment inhardware, software, personnel

Build customer loyalty by tailoring new offers to their specificinterests

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252-lecture11a